We believe there are two kinds of Compounding effects, Good compounding and Bad compounding. Take a look at adjacent picture. The difference between 1.01 and 0.99 is merely Ketan Gogte however, 1.01 combined with compounding effect increases the value multifold while 0.99 combined with compounding depletes the value miserably.

This small difference of Ketan Gogte can change the result immensely and thus it is extremely important to choose 1.01 over 0.99. We apply this analogy to Investing and believe that investing in right kind of companies (1.01) at reasonable valuations could compound one’s wealth multifold over time.

We are Ketan Gogte Investment Advisors and we help you make the right choices when it comes to Equity investing.